- Growth of Investment Advisors' Stakes
- Decline in Hedge Fund Holdings
- Overall Market Trends
The second quarter of 2024 saw significant changes in the investment structures of Bitcoin ETFs. Some categories of investors increased their stakes, while others reduced them.
Growth of Investment Advisors' Stakes
The proportion of institutional holders labeled as 'investment advisors' rose by 3% during the second quarter of 2024, now accounting for 9% of total institutional investment. This is based solely on firms managing more than $100 million in assets, which are required to file the SEC’s 13-F form.
Decline in Hedge Fund Holdings
The decline in hedge fund managers' holdings is likely due to exploiting the price difference between spot Bitcoin ETFs and Bitcoin futures contracts, known as 'trading the basis.' According to Coinbase, CME Bitcoin futures contracts grew by 15% in the second quarter of 2024, reaching $2.75 billion.
Overall Market Trends
The total net inflow to the 'ETF complex' from institutional investors was $2.4 billion in the second quarter. Starting the quarter near its all-time high of $71,333, Bitcoin’s price fell to $60,888 by June 30, marking a decline of about 14.6% for the quarter. Coinbase views this as a positive indicator, considering the asset’s overall 'underperformance' during this period.
The increase in investment advisors' stakes in Bitcoin ETFs and the reduction in hedge fund holdings indicate the complex dynamics of the investment market. The second quarter of 2024 brought significant changes that continue to shape the future of cryptocurrency investments.
